European Union (Withdrawal) Bill

Ed Davey Excerpts

2nd reading: House of Commons
Monday 11th September 2017 Commons Chamber

[Sir Edward Davey (Kingston and Surbiton) (LD)]

Will the hon. Gentleman give way?

[Zac Goldsmith]

No, I will not take any more interventions.

Most critically, even though we apply high animal welfare standards to production in this country, we cannot apply those standards to the food we import, which means that instead of preventing cruelty, which is what we are trying to do, we are simply exporting that cruelty to other countries while disadvantaging our own farmers. We could address that as well.

Clearly, in other areas, the EU has been a good thing for the environment—I would not pretend otherwise. The EU has undoubtedly been instrumental in forcing us to clean up our act. For instance, our rivers and beaches are cleaner today because of the EU than they would have been.

[Sir Edward Davey]

Will the hon. Gentleman give way?

[Zac Goldsmith]

I will not.

That is why a core responsibility of this Parliament and this Government is to ensure that those key EU regulations—the habitats directive, the birds directive and the sewage sludge directive—have absolute, meaningful, proper, full protection in British law. We have had that commitment, but I should like to hear it a few more times from Ministers during this debate.

There are legitimate concerns about this process that need to be addressed in the Minister’s wind-up.

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[Vicky Ford (Chelmsford) (Con)]

In last year’s referendum I and many others warned of the risk of uncertainty. That risk has not gone away, but we can work together to reduce it, which is why the Bill is needed. Businesses need legal certainty to trade, create jobs and generate taxes, and the laws that govern our businesses are important. For the past 40 years or so, many of those laws have been agreed at European level. In my time in the European Parliament, I saw how those laws often cover important areas: consumer rights, copyright, product safety, even counterfeit medicines and data protection.

In my constituency of Chelmsford there are about 2,000 jobs in the insurance sector. The UK is home to the world’s largest insurance market, and we provide insurance for airline crashes, cyber-attacks and even to clear up after the horrific hurricane that is raging across the Atlantic today. Our insurance companies can offset such risks by re-insuring with others in the industry, and the industry is governed by the European regulations. Our companies do not want to scrap their rulebook, and the Bill will enable those rules to be moved into UK law; it will help avoid a legal vacuum, which is important. Many laws cannot be directly copied across; technical changes are needed, and Ministers need the powers to make those technical decisions.

The Bill is not perfect; there are many areas where decisions are not technical and policy decisions will need to be made. In the insurance sector we see that the devil is in the detail. Article 16 of the insurance distribution directive says that European insurers can only redistribute their risk to others that are regulated in the EU. We cannot just cut and paste that into our rulebook, as it would cut us out of our own market. Dealing with such examples is not straightforward; policy decisions are needed, and they could affect real jobs. The companies concerned want to be consulted, as will regulators in other countries, and such decisions deserve proper scrutiny.

Other sectors also have concerns. The Bill exempts the charter of fundamental rights, but the tech sector points out that article 8 of the charter is crucial because it underpins data protection laws, which enable the free flow of data. TheCityUK asks what is happening to the level 2 decisions, which are important in implementing much of our financial services law and many of which will arrive only after the date of exit. The consumer organisation Which? points out that EU directives provide not only consumer protection, but product standards and the networks for sharing information on things such as dangerous toys and dodgy electrical goods. What is to happen to those after Brexit?

It is important that stakeholders can raise their concerns, and significant decisions deserve to be properly debated. The statutory instrument mechanism does not give confidence to stakeholders or future trading partners that issues will be properly scrutinised. Some 3,500 statutory instruments are laid before this House every year, yet only eight have been annulled since world war two. The rest of the world is watching us. As a British Conservative, I have spent years working with Ministers, championing the cause of better regulation; we have told legislators all across the EU that before they change laws they should consult those who will be affected, address the impact and make sure that decisions are not just taken behind closed doors. Now is not the time to drop the ball on that at home, because if we are to get deep trading partnerships with Europe and other parts of the world, we need to retain their trust. Where decisions have an impact on other countries, our future trading partners need to know that we are open to listening to their suggestions.

[Sir Edward Davey]

The hon. Lady is making a powerful point. When I was a Business Minister in the coalition Government, I negotiated with the EU Council on competitiveness to ensure that the EU undertook proper regulatory impact assessments of its regulations. That was a considered approach to make sure that stakeholders were consulted. Under the regulations proposed in the Bill no such consultation will take place, which is far worse and far more damaging than the situation under the EU.

[Vicky Ford]

I wish the EU had followed that mechanism all the time, then we might not be where we are now. The right hon. Gentleman’s point shows precisely why we need amendments, which I was coming to. Last Thursday, the Secretary of State suggested that he would be prepared to agree to a sifting or triage process, so that technical decisions could be made swiftly but more important policy decisions can have proper scrutiny. The Opposition have not offered any alternative drafting, but that is the sort of amendment we need to see. I will be supporting the Bill tonight, because it is necessary and it needs to move to Committee. We need to make sure we put in place many amendments so that we provide for scrutiny, but this is not a time to just throw out the Bill, because history will not thank those who treat this as another game of political football.

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[Sir Edward Davey (Kingston and Surbiton) (LD)]

When a Government come to a Parliament and say, “Give us more powers, or there will be chaos,” democrats should be worried. Over the years, when a Government have said, “Give us more powers, or there will be chaos,” they have acted like dictators. I am not saying that the Government are a dictator, but they are doing what Lord Hailsham said: they are acting like an elective dictatorship. That is why they are, through this Bill, undermining the very weak concept of parliamentary democracy that we have retained in this country.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

Does the right hon. Gentleman agree that it is even worse for the Government to behave as an elected dictatorship, given that they have lost their majority?

[Sir Edward Davey]

The hon. Gentleman makes a very good point, and I will come to that.

I would argue that the Bill undermines parliamentary sovereignty more than any EU directive ever did, and I will explain to the Minister why that is. I do not think, for example, that the Bill does what leave voters wanted in the referendum. Many leave voters I talk to say they voted leave because they wanted to restore parliamentary sovereignty—they wanted Parliament to take back control. But this Bill does not give control back to Parliament; it gives control back to Ministers, who do not want to be held to account properly in this House.

Leave voters talked about getting more democracy, but as the hon. Gentleman said in his intervention, democracy is being taken not by this place but by a Government who do not even have a majority in this House. That is not what leave voters voted for. During the hours we have debated this Bill, I have heard that when people answered the referendum question, they were saying we should do what we are doing now. Well, I am afraid that that is not what happened. The question before the House tonight was not on the ballot paper in the referendum; it is a completely different question.

People might say that the Bill gives effect to the referendum vote, but the point is that there are many ways of doing that, and this Bill is not doing that in the spirit of the referendum and the spirit of increasing parliamentary sovereignty. In fact, we have heard from right hon. and hon. Members on both sides of the House alternative ways of giving effect to that referendum vote. Early in the debate, we heard some ideas from the right hon. Member for Derby South (Margaret Beckett). We have heard from the hon. Members for Totnes (Dr Wollaston), for Gloucester (Richard Graham) and for Aberavon (Stephen Kinnock). They have put forward ideas that go way beyond what is in the Bill in terms of holding the Government to account as they transcribe EU law into British law. I could think of a whole series of enhanced procedures for doing that, including special Committees and Select Committee hearings. Perhaps the Select Committee on Procedure should be asking that question and reporting back to the House—except the Government do not want that. They do not really want this House to be involved, and that is why they are excluding the Committees and going for this fast-track, fundamentally undemocratic approach.

Ministers will say, “What about time? All these alternative options will take time.” We put Bills through this House quickly when there is a war or a national emergency. There is no war or national emergency now; we have time to consider this as true democrats to ensure that we get it right. The fact that the Government are not doing that is outrageous.

The Bill’s approach is dangerous because parliamentary sovereignty in this country is such a weak reed, as it has been for many years. Executives of all hues—even, dare I say, coalitions—have, through the Whip system, managed to ensure that this House has not really taken part in some of the key decisions of the day. This is most seen in how the House debates Government expenditure decisions. Right hon. and hon. Members might be interested to know that the last time this House voted against a spending request from the Executive of the day was in 1919, when it voted against spending for the bathroom of the then Lord Chancellor. Since then, hundreds of billions of pounds have gone through this House without a proper vote against, because the Executive do not really believe in parliamentary sovereignty.

Parliamentary sovereignty is a weak doctrine in this country, and the danger of the Bill is that even more of what is left of it will be taken away. That is shocking. I believe that when leave voters talked about parliamentary sovereignty, they wanted to increase the power of this place. If we see the last vestiges of that power walking out of the door tonight, and if we vote for the Second Reading of this Bill, that will be a backward step and will go against the spirit of the referendum vote. Allowing the Government these additional powers is tantamount to the temporary abolition of this House. That is not what people voted for, and this House should defend itself and defend democracy.